Islamic Republic of Pakistan

In Association with

Asian Development Bank (ADB)

Pakistan Power Distribution Enhancement MFF Project

Tranche III (Saving Component)

Loan No.2972-PAK

Laying of 132 kV D/C Copper Cable b/w 220 kV Shalamar – 132 kV

Shalamar - II Grid Stations

Due Diligence Report

September 2016

Lahore Electric Supply Company

(LESCO)

Table of Contents

List of Abbreviations

A. Project Overview

B. Background

C. The Subproject

D. Potential Social and Resettlement Impacts

E. Due Diligence

F. Community Consultations

List of Abbreviations

ADB Asian Development Bank

AP Affected Persons

DISCOs Distribution Companies

D/C Double Circuit

EA Executing Agency

LESCO Lahore Electric Supply Company

MFF Multi-tranche Financing Facility

MoWP Ministry of Water & Power

PEPCO Pakistan Electric Power Company

ROW Right of Way

TEPA Traffic Engineering Planning Agency

LDA Lahore Development Authority

WAPDA Water and power Development Authority

WASA Water and Sanitation Agency

Due Diligence Report

Laying of 132 kV D/C Copper Cable b/w Shalamar 220 kV – 132 kV

Shalamar - II Grid Stations

A. PROJECT OVERVIEW

1. The Government of Pakistan (the Government) has requested the Asian Development

Bank (ADB) to support the Power Distribution Enhancement Investment Program (the

Investment Program) and provide financing through a multi-tranche financing facility

(MFF) for $810 million over 10 years. The Investment Program is designed to provide

grid-connected customers with adequate and reliable supply of electricity. The

rehabilitation, augmentation, and expansion of the eight power Distribution Companies

(DISCOs) will increase the reliability of supply to residential, agricultural, commercial,

and industrial customers in Pakistan. A reliable electricity supply will lead to social and

economic benefits and improved conditions for schools, hospitals, and other social

services.

2. This Investment Program will (i) improve power distribution infrastructure through

system rehabilitation, augmentation, and expansion; and relieve the power system from

distribution bottlenecks and constraints; (ii) enable continued operation and maintenance

in accordance with best international practices; and (iii) commercialize DISCO

operations. Specifically, (i) DISCOs will adhere to regulatory requirements and comply

with regulated security standards; (ii) about 12,000 gigawatt-hours (GWh) of additional

energy is forecast to be supplied through the national grid annually; (iii) the system will

be upgraded to meet peak demand, with electricity outages significantly reduced; and (iv)

30 million additional people will have access to electricity from the national grid by 2018

3. Pakistan Electric Power Company (PEPCO) has been nominated by Ministry of Water

and Power (MOWP) to act as the Executing Agency (EA) with each DISCO being the

Implementing Agency (IA) for work in its own area. PEPCO’s role in the processing and

implementation of the investment program is that of a coordinator.

4. Lahore Electric Supply Company (LESCO) implemented the Tranche-III program which

included construction of 04 new grid stations, four (4) extensions and thirteen (13)

augmentation sub-projects, at overloaded substations. Now in order to utilize the savings

of approximately US$2.0 Million from T-III Loan No.2972-Pak, LESCO has included

this subproject in the scope of work as Saving Component (T-III) for ADB’s financing.

5. The said subproject comprises of Laying of 132 kV D/C Power Cable (Copper) b/w

220kV Shalamar – 132 kV Shalamar II Grid Stations. Shalamar and is feeding important

densely populated areas of old Lahore including Bhagwanpura,Singhpura,Shalamar Link

Road, Darogawal etc.

B. Background

6. In order to strengthen 132 kV system and dispersal of power from 220 kV Shalamar GIS

grid station LESCO has proposed interconnection between 220 kV Shalamar – 132 kV

Shalamar II grid station through 132 kV D/C underground Power Cable (Copper) of

approximately 300 m length. Moreover, it will be a feeding source for 132 kV UET

substation under construction for providing uninterrupted power supply for Orange Line

Train Project which is a mega project in the city.

7. Therefore, laying of 132 kV copper cable b/w 220 kV Shalamar -132 kV Shalamar is

essential and unavoidable in order to ensure continuous electricity supply for Orange

Line Train and to give relief and strengthen the distribution system.

C. The Subproject

8. The SP covers only the laying of 132 kV D/C underground power cable (copper cable)

between 220 kV Shalamar GIS – 132 kV Shalamar II Grid station. The route for laying of

new underground cable will be followed starting from Shalamar –II Grid station, passing

through the premises of grid station, adjacent WAPDA Base Workshop for automobiles

and will end in yard of 220 kV GIS Grid Station. The whole route exists within boundary

walls of 132 kV Shalamar G/Station,Base workshop WAPDA and 220 kV Shalamr Grid

station so no external people or community will be affected. Length of route will be

approximately 300 m.A trench for laying of cable has already been constructed. Map is

given in Annexure A.

9. This route is a tentative route and will be finalized once the contractor will be mobilized

to conduct survey and finalize the design. Photographs are given in Annexure B.

D. Potential Social and Resettlement Impacts

10. No purchase of land and dislocation of people is involved for this subproject as

underground cable will be laid down within the boundary wall of LESCO, NTDC and

WAPDA premises.

11. There are no directly or indirectly affected persons (APs) and no compensation payment

is involved.

E. Due Diligence

12. As there are no directly/indirectly affected persons (APs) and no compensation payment

is involved, the preparation of a LARP for this SP is not required and hence this brief due

diligence report has been prepared to documentary requirements of both the LESCO and

ADB.

F. Community Consultations

13. Consultation with the staff of 220 kV Shalamar Grid Station,132 kV Shalamar Grid

Station and WAPDA Base Workshop for automobiles was carried out on site. Detail

regarding consultation is given in Annexure A. All the relevant staff and officers showed

their consent for this project as already 220 kV grid station is connected to Shalamr II

grid station and underground power cable will provide another feeding source to

Shalamar grid station for further dispersal of electricity. However, all the relevant staff of

LESCO and WAPDA Base workshop showed their concern regarding design of the

project and urged for direct laying of cable underground instead of using of already

constructed trench for better safety and maintenance of cable.

Annexure A Consultation held on September 23, 2016

List of Participants in Consultation Sessions

Sr.No. Name of participants Address

1 Mr.Akhter Riaz

AET Shalamar

Shalamar-II Grid Station

2 Mr.Afzaal Shalamar-II Grid Station 3 Tariq Masood Malik

Manager

WAPDA Base Workshop

4 Tahir Javid Asstt.Manager WAPDA Base Workshop 5 Farooq Hassan

Asstt.Manager (O&M)

NTDC

220 kV GIS Shalamar Grid

Station

6 Javaid Bhullar Foreman 220 kV GIS Shalamar Grid

Station

Annexure B

Photographs of Route of 132 kV Underground Power Cable b/w 220 kV Shalamar-132 kV

Shalamar II Grid Station

Behind Control Room of Shalamar II Grid station where Route starts for U/G Cable

Shalamar II Grid Station

Base Workshop where cable route will enter into Base workshop premises

The wall of 220 kV Grid Station shown at far end where route will enter into 220 kV

Shalamar G/Station

Wall on other side where Route from Base workshop will enter into 220 kV GIS Shalamar

Yard of 220 KV Grid Station where u/g cable will end

Photographs of Consultation